Quote:
Originally Posted by jaysay
The Problem raised by this VAT rise is that a lot of small to medium businesses are being saddled with huge cost in making these reductions, at a time they can ill afford it, and aware of the fact that in April 2010 they will have to go through the whole processes again when the rate is returned to its present level of seventeen and a half percent
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I think you are mistaken about the costs involved to small to medium businesses being sadled with huge costs. Most businesses have computerised accounting systems and it is very easy to change the VAT rate, it is just means going into the master data -which shows the various parameters - and changing the percentage figure. I have been involved, at companies I have worked at, in previous VAT changes. If they are not computerised it just means multiplying the nett price by 15% instead of 17.5% to calculate the gross selling price.